Positive Shift: Q4 GDP Growth Reaches 6.1%, Breaking the Slump of Two Previous Quarters
Written by Sanjay Kumar
According to the government, the Indian economy experienced a growth of 7.2 percent in the previous fiscal year, with the Gross Domestic Product (GDP) expanding 6.1 percent in the fourth quarter.
After two consecutive quarters of decline, the January-March quarter experienced a rise in GDP growth. The growth rate in the third quarter (October-December) was 4.5 percent, while the fourth quarter estimate surpassed the 4 percent growth recorded in the same period the previous year.
Although the overall estimate for FY 2022-23 is lower than the previous year’s growth of 9.1 percent, it slightly exceeds the estimates of the central bank.
The Reserve Bank of India had initially projected a GDP growth of 7 percent for FY 2022-23, but Governor Shaktikanta Das had acknowledged the possibility of surpassing this estimate.
Among the various sectors, trade, hotels, and transport reported the highest growth rate of 14 percent.
Prime Minister Narendra Modi hailed the GDP growth figures and said it underscores the resilience of the Indian economy amid global challenges.
The 2022-23 GDP growth figures underscore the resilience of the Indian economy amidst global challenges. This robust performance along with overall optimism and compelling macro-economic indicators, exemplify the promising trajectory of our economy and the tenacity of our people.
— Narendra Modi (@narendramodi) May 31, 2023
“The 2022-23 GDP growth figures underscore the resilience of the Indian economy amidst global challenges. This robust performance along with overall optimism and compelling macro-economic indicators, exemplify the promising trajectory of our economy and the tenacity of our people,” tweeted the Prime Minister.
According to a recent research report by US-based rating firm Moody’s, India is expected to maintain its position as the fastest growing G20 economy in the coming years.
Moody’s highlighted that urbanization will drive demand for housing and automobiles, while government infrastructure spending will boost the demand for steel and cement. Additionally, India’s commitment to achieving net-zero emissions will attract investments in renewable energy.
The Importance of GDP
Gross Domestic Product (GDP) serves as a crucial measure of a country’s economic performance and plays a pivotal role in shaping policies and decision-making at both the national and international levels. One of the key importance of GDP is its ability to provide a comprehensive snapshot of the size and growth of an economy. By calculating the total value of goods and services produced within a country over a specific period, GDP enables economists, policymakers, and investors to assess the overall health and vitality of an economy.
It serves as an important indicator of economic growth, allowing governments to monitor trends, identify strengths and weaknesses, and implement appropriate strategies to stimulate development and address challenges. Moreover, GDP serves as a benchmark for international comparisons and economic competitiveness. It enables countries to assess their relative position in the global economy and compare their performance with other nations. GDP per capita, which divides the total GDP by the population, provides insights into the average standard of living and economic well-being of a country’s residents.
This information is crucial for policymakers to gauge the level of economic development, address income disparities, and design policies to improve the quality of life for their citizens. Additionally, GDP plays a significant role in attracting foreign investment, as it provides potential investors with an indication of the economic potential and stability of a country, influencing decisions on business expansion, trade agreements, and capital flows.
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